Microsoft Confirms That It Is Buying Obsidian Entertainment And inXile

There have been rumours that Microsoft was planning to acquire Obsidian Entertainment for a while. Well, they’ve just confirmed that it is true. Not only that, but they’ve also bought inXile.

They announced the news during the X018 fan event in Mexico this weekend.

In a statement sent to Eurogamer regarding Obsidian, Microsoft said: “As one of the industry’s premiere RPG developers, we couldn’t be more excited about the opportunity to add their expertise to Microsoft Studios, while enabling the studio to preserve its unique culture and build on its talent and vision to fully realise their creative ambitions.”

Speaking of inXile, they said: “As part of Microsoft Studios, inXile will have the support and freedom to fully realise its creative ambitions on both existing franchises and new projects. The studio will continue to operate autonomously and bring its unique talents, IP and expertise to Microsoft Studios as they build new RPG experiences for our players and fans.”

Obsidian, an independent development studio, has brought to life incredibly popular games including Dungeon Siege III and South Park: The Stick of Truth.

Despite developing some really beloved titles in the industry, Obsidian has struggled financially in the past, and nearly closed its doors back in 2012 due to the strain.

When the rumours first circulated, Microsoft refused to comment. However, an Obsidian rep jokingly commented: “Unfortunately, we don’t comment on rumors or speculation other than to say that the Rumors album by Fleetwood Mac still holds up.”

Between Xbox Game Pass, smart moves with backward compatibility, and a growing stable of first-party devs (I expect more acquisitions in addition to Obsidian), Microsoft is positioned to do some really exciting things next generation.

Couple takeaways: 1) This move makes sense for both sides. Microsoft needs more first-party games; Obsidian needs more cash. 2) Lasting as a mid-to-large-sized independent developer in the video game industry appears to be impossible.

Mel Ramsay is the Senior Editorial Manager at FragHero. She started her career writing obituaries and funeral guides online. Since then, her work has been published in a wide variety of national and local news sites. She worked at LADbible Group for three years, starting off as a journalist and then moving up to Senior Journalist and finally Senior Social Editor. She is part of the BBC's Generation project and has spoken about young people, politics and mental health on television, radio and online. Contact her - [email protected]